Analytics, Financial Services, Lithuania

When evaluating the present international and Lithuanian economic situation, the members of the board of directors of the Bank of Lithuania, stressed that it is necessary to prepare appropriately for the forecasted slowdown in economic growth and possible shake-ups, and devise plans for the insurance of liquidity as well as for the continuation of particular activity, reports ELTA.

Reinoldijus Sarkinas, chairman of the board of directors of the Bank of Lithuania, described the present capital base of the Lithuanian banking system as effective and reminded that the indicator of the adequacy of the banking system as on April 1this year constituted 12.72 %.

The leaders of commercial banks informed about their plans to strengthen the stock base this year and assured that with the approval of shareholders the considerably high stock adequacy level will be maintained. Sarkinas claimed that so far "the question on the reduction of the compulsory resources norm by commercial banks is not on the agenda" as the Association of Lithuanian Banks wishes. However, having evaluated further development, necessary decisions will be taken. During the meeting, it was mentioned that commercial banks" request to pay fees to banks for all compulsory resources will be discussed. Currently fees are paid only for some compulsory resources. Also the request of commercial banks to reduce the amount of the insurance payments in Lithuanian deposit insurance system was discussed.

The representatives of the Bank of Lithuania offered to search for alternative ways to assure and legalize similar level of insurance system as it is now and has to be reached in the future. As long as no such solutions are found, the Bank of Lithuania thinks that the reduction in deposit insurance is not acceptable.

During the meeting, the representatives of banks expressed their concern about the information announced in media on the preparation of drafted law on the insolvency of legal persons. They believe that at the moment such legal act would be irrational.